RETAIL LEASE SERVICE PLAN AGREEMENT
PASSENGER CARS AND LIGHT TRUCKS
Agreement executed April 3, 1987 by and between General Motors Acceptance
Corporation ("GMAC") and Major Fleet and Leasing Corp. ("Lessor")
WITNESSETH:
WHEREAS, GMAC will from time to time grant permission to Lessor to lease
to third persons motor vehicles in which GMAC has a security interest and Lessor
desires to obtain the services of GMAC in respect of Lessor's leasing operation;
and
WHEREAS, GMAC is willing to extend the services under the terms and
conditions set forth below;
NOW, THEREFORE, it is agreed that:
A. Scope of Agreement
This Agreement applies to the billing and collection by GMAC of certain
rentals payable under leases (acceptable to GMAC) of motor vehicles, consisting
of eligible passenger cars and light trucks having a gross vehicle weight of
less than 15,000 pounds, in which GMAC has a security interest pursuant to a
Security Agreement in a form acceptable to GMAC.
B. Procedure
Credit investigation--Lessor shall furnish to GMAC the name and address of
each prospective Lessee whose rental payments Lessor desires to be administered
under this Agreement, together with any further information GMAC may reasonably
request to enable it to investigate the credit standing of Lessee. Upon receipt
of the information, GMAC shall conduct a credit investigation and notify Lessor
whether it will administer Lessee's rentals under this Agreement.
Documentation--Upon notification by GMAC that it will administer the
rentals, Lessor shall furnish GMAC with:
(1) An executed Security Agreement in the form provided by GMAC covering the
motor vehicles leased; and
(2) An executed copy of the completed Non Maintenance Lease Agreement in the
form provided by GMAC together with any attachments; or
(3) When the Non Maintenance Lease Agreement is not used, an executed copy of
the completed lease agreement, including any attachments, together with an
executed Acknowledgment of Notice of Assignment in the form provided by
GMAC.
C. GMAC Services
GMAC agrees to:
1. Investigate the credit standing of each prospective Lessee
designated by the Lessor;
2. Xxxx each Lessee, whose rentals are administered under this
Agreement, in advance for each monthly rental, except for the
monthly rental for the first month of the lease term which will be
collected by the Lessor upon delivery of the vehicle;
3. Collect rentals and follow any Lessee in default for payment of past
due rentals;
4. Notify Lessor of each Lessee in arrears in excess of 45 days;
5. Apply collected rentals, less monthly service charges, to Lessor's
obligations to GMAC under the Security Agreement and remit monthly
to the Lessor any excess as may be applicable to sales taxes and/or
insurance premiums.
6. Repossess a leased motor vehicle, in its own or Lessor's behalf, if,
in the opinion of GMAC, repossession is necessary or desirable by
reason of the Lessee's default under the lease;
7. Return any leased motor vehicle to Lessor within 90 days after
default in payment of the oldest rental payment remaining unpaid on
the date the vehicle is returned to Lessor, provided, however, that
GMAC will not be responsible to repossess and return any leased
motor vehicle if it is unable to repossess the vehicle because of
(a) Lessor's failure to have obtained a proper certificate of title
when required by state law, or (b) an alleged breach by Lessor under
its lease with the Lessee. In the event GMAC is unable to repossess
because of any legal proceedings (bankruptcy, receivership,
replevin, or other litigation) the running of the time period shall
be suspended during such period, and
8. In the event of repossession to reduce the Lessor's responsibility
under Provision D for the unpaid balance under the Security
Agreement governing any leased motor vehicle covered by deductible
physical damage insurance, where physical damage in excess of the
deductible is incurred prior to repossession, to the extent of one
deductible not to exceed $250 for collision insurance and $100 for
comprehensive insurance.
X. Xxxxxx'x Agreements
Lessor understands and agrees that:
1. Lessor will forward to the appropriate governmental authorities
promptly when due the sales taxes, if any, remitted to Lessor
monthly by GMAC under Provision C(5) above.
2. Lessor shall pay to GMAC a monthly service charge with respect to
each lease administered hereunder, which fee shall be deducted
monthly from the applicable Lessee's payment prior to application of
the surplus thereof as set forth in Provision C(5). The monthly
service charge with respect to each lease shall be that in effect at
the time the lease is accepted for administration by GMAC and shall
not vary during the term of the lease. GMAC shall quote the fee
applicable to new leases from time to time and on request.
3. Lessor shall indemnify GMAC against and hold it harmless from any
and all loss, liability, damages, costs and counsel fees in any way
arising out of any claim or action by a lessee or other party
relating to a breach or alleged breach by Lessor under a lease
covering a vehicle in which GMAC has or had a security interest.
4. GMAC's assumption of responsibility pursuant to Provisions C(6),
C(7) and C(8) is conditioned on the following:
a. That liability insurance coverage acceptable to GMAC with
minimum limits of $100,000/$300,000 for bodily injury and
$25,000 for property damage is provided under the lease and
maintained during the term thereof.
b. That physical damage insurance, acceptable to GMAC and
protecting its interest against the hazards of fire, theft,
and collision, is provided under the lease and maintained
during the term thereof.
C. That the Lessee was of legal age at the time the lease was
executed.
d. That the leased motor vehicle is accurately identified in the
lease.
e. That the security deposit, if any, obtained from the Lessee
under the lease is exactly as specified therein.
f. That the leased motor vehicle will be used exclusively by the
Lessee or in his own business and not for hire.
9. That all disclosures required by law were made to the Lessee
prior to execution of the lease.
5. Lessor shall pay to GMAC the unpaid balance due under the applicable
Security Agreement promptly upon the earliest of:
a. The 30th day following termination of the lease term (including
extensions thereof approved by GMAC); or
b. the 30th day after Lessor obtains possession of the vehicle for any
reason unless the vehicle has been placed in lease with another
Lessee approved by GMAC; or
C. the 30th day after loss of the vehicle by theft or similar cause if
the vehicle is not recovered prior thereto; or
d. the 30th day after the vehicle is destroyed or so damaged as to be
rendered unsuitable for repair and further rental; or
e. the sale of the vehicle; or
f. otherwise in accordance with the terms of the Security Agreement.
E. Payment in Full of Security Agreement
GMAC's assumption of responsibility under this Agreement will terminate
with respect to any leased motor vehicle upon payment in full of Security
Agreement covering said vehicle, in which event GMAC shall reassign to
Lessor its right to any rentals thereof.
F. Substitution for Prior Agreement
This Agreement shall terminate any Retail Lease Service Plan Agreement for
passenger cars and light trucks presently in effect between GMAC and
Lessor, provided that the rights and responsibilities of GMAC and Lessor
under said Retail Lease Service Plan Agreement for passenger cars and
light trucks with respect to rentals being administered thereunder on the
date of this Agreement shall not be affected.
G. Duration of Agreement
This Agreement shall terminate 5 days after receipt by either party of
written notice of termination. Termination shall not affect the rights and
responsibilities of GMAC and Lessor with respect to rentals being
administered under this Agreement at the effective termination date.
GENERAL MOTORS ACCEPTANCE CORPORATION Major Fleet and Leasing Corp.
EAB Plaza-West Tower 0000 Xxxxxxxx Xxxxxxxxx
Xxxxxxxxx, XX 00000 Xxxxxx, XX 00000
By [ILLEGIBLE] By [ILLEGIBLE]
------------ -----------------------------
(Title) (Title)
Isl Xxxxxxxxxx Xxxxx
XXXXXXXXXX XXXXX
NOTARY PUBLIC, State of Xxx Xxxx
Xx. 00-0000000 - Xxxxxx Xxxxxx
